Darwin LNG shipment on its way to Japan

The first shipment of liquefied natural gas (LNG) from the INPEX-operated Ichthys LNG Project’s onshore LNG processing facilities in Darwin is making its way to Japan.

The $US34 billion Ichthys LNG Project – one of the world’s largest oil and gas projects – is expected to supply more than 8.9 million tonnes of LNG per year over the next 40 years.

APPEA Chief Executive, Dr Malcom Roberts, congratulated INPEX and its Ichthys LNG joint venture participants on the first cargo from the project.

“Industry applauds this first LNG shipment using the purpose-built Pacific Breeze destined for the INPEX‑operated Naoetsu LNG terminal in Japan,” Dr Roberts said.

“This world-class LNG Project – seven years in the making – will deliver jobs, taxation and export revenues for Australia for decades to come,” Dr Roberts said.

“More than 30,000 people worldwide have worked on this project, including up to 10,000 workers in Darwin during the plant’s construction phase, providing a major economic boost for the Northern Territory.”

Minister for Resources, Matthew Canavan, said this is the next step in what will be decades of continued economic benefits for Australia.

“With 40 years of cargoes ahead, the Ichthys LNG Project will provide multi-generational employment, contracting and investment opportunities, with Northern Australia one of the biggest economic winners.

“Besides its projected long lifespan and significant investment in Australia, the Ichthys LNG Project has delivered big benefits for the Northern Territory and Australia as a whole.

“More than 5,600 contracts and purchase orders have gone to local businesses in the Northern Territory, it has supported more than 60 Indigenous businesses and employed more than 1,400 Aboriginal and Torres Strait Islander people over the course of the project.”

Around 70 per cent of the LNG produced by Ichthys will be supplied to Japanese customers, contributing to the stable supply of low emissions energy and meeting demand from Asia and the rest of the world.

Dr Roberts said Australia was reaping the rewards of more than $200 billion worth of new investments that will see LNG exports surge from 30 million tonnes in 2015 to more than 85 million tonnes by 2020.

Six new LNG projects have now been completed since 2014 (QCLNG, GLNG, Australia Pacific LNG, Gorgon, Wheatstone and Ichthys) with the Prelude Floating LNG also nearing completion.

“These are major legacy projects that will deliver significant benefits to the Western Australian and Northern Territory economies over many decades,” Dr Roberts said.